Northwest Gas (NWN) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: 4.16%
• Average Volume (3M): 233.08K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.26
• Revenue Growth: 8.40%
• EPS Growth: 17.90%
• Country: US
• Employees: 1,452
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.01
• Shares Outstanding: 40,938,430
• 10 Day Avg. Volume: 237,453
• 30 Day Avg. Volume: 233,084
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 6.87
• Enterprise Value/Ebitda: 9.21
• 1Y Price Target: $51.50
• Price Target Upside: 9.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $45.00 ▼(-4.52% Downside)

Northwest Gas's overall score reflects strong earnings growth and strategic expansions, particularly in Texas, as highlighted in the earnings call. While technical indicators show bullish momentum, overbought conditions suggest caution. Financial performance is solid but hampered by high leverage and cash flow challenges.

Positive Factors

Revenue Growth

Consistent revenue growth and improving margins indicate strong market position and effective cost management, supporting long-term profitability.

Customer Base Expansion

Significant customer base expansion, particularly in Texas, demonstrates successful market penetration and potential for sustained revenue growth.

Dividend Increase

A higher dividend reflects confidence in cash flow stability and commitment to returning value to shareholders, enhancing investor appeal.

Negative Factors

High Leverage

Significant leverage poses financial risks, especially in a rising interest rate environment, potentially affecting financial flexibility and stability.

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation, which could impact liquidity and the ability to fund operations and growth initiatives.

Increased Operational Costs

Rising operational costs can erode profitability and require effective cost management to maintain margins and support long-term growth.

Northwest Gas Business Overview & Revenue Model

Company Description

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington. The company also operates 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers; offers natural gas asset management services; and operates an appliance retail center. In addition, it engages in the gas storage, water, non-regulated renewable natural gas, and other investments and activities. The company provides natural gas service through approximately 786,000 meters in Oregon and southwest Washington; and water services to a total of approximately 80,000 people through approximately 33,000 water and wastewater connections in the Pacific Northwest and Texas. Northwest Natural Holding Company was founded in 1859 and is headquartered in Portland, Oregon.

How the Company Makes Money

Northwest Gas generates revenue primarily through the distribution of natural gas to its customers, which includes residential, commercial, and industrial sectors. The company earns money by charging customers for the volume of gas consumed, in addition to a fixed distribution charge that covers the costs of operating and maintaining its pipeline infrastructure. Revenue is also derived from utility rates approved by state regulatory bodies, which allow NWN to recover costs and earn a reasonable return on investment. Significant partnerships with local governments and regulatory agencies play a crucial role in setting these rates and ensuring compliance with safety standards. Additionally, NWN may benefit from incentive programs or grants aimed at promoting energy efficiency and cleaner energy sources, which can create additional revenue streams.

Northwest Gas Financial Statement Overview

Summary

NWN exhibits steady revenue growth and sound operational efficiency, supported by solid margins. The balance sheet shows sustainable leverage levels, although reliant on debt. Cash flow performance highlights strong cash generation but is overshadowed by negative free cash flow. Overall, NWN maintains a stable financial position with areas for improvement in cash management.

Income Statement

NWN shows a consistent revenue growth trajectory with the latest TTM revenue growth of 5.3%. The gross profit margin has improved to 45.1% TTM, reflecting enhanced cost management. However, net profit margin remains moderate at 8.5% TTM. EBIT and EBITDA margins are healthy at 19.4% and 33.5% TTM, respectively, indicating stable operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 1.64, indicating a moderate level of leverage. Return on equity is solid at 7.1% TTM, suggesting effective utilization of shareholder funds, while the equity ratio is 25.5%, which is typical for the industry. The balance sheet reflects a stable financial position, though with a reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is robust at 2.48 TTM, demonstrating strong cash conversion. However, free cash flow remains negative, posing a concern for liquidity. The negative free cash flow growth rate of -17.8% from the previous period raises caution on capital expenditure management and cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.15B	1.20B	1.04B	860.40M	773.68M
Gross Profit	576.24M	397.61M	423.87M	341.23M	329.12M	300.50M
EBITDA	429.89M	348.09M	344.49M	303.37M	264.09M	238.09M
Net Income	103.25M	78.87M	93.87M	86.30M	78.67M	76.78M
Balance Sheet
Total Assets	5.79B	5.23B	4.87B	4.75B	4.06B	3.76B
Cash, Cash Equivalents and Short-Term Investments	102.58M	38.49M	32.92M	29.27M	18.56M	30.17M
Total Debt	2.46B	1.96B	1.75B	1.68B	1.52B	1.34B
Total Liabilities	4.33B	3.85B	3.58B	3.57B	3.13B	2.87B
Stockholders Equity	1.46B	1.39B	1.28B	1.18B	935.15M	888.73M
Cash Flow
Free Cash Flow	-182.16M	-194.12M	-47.40M	-191.69M	-134.90M	-137.87M
Operating Cash Flow	235.98M	200.28M	279.95M	147.67M	160.35M	143.02M
Investing Cash Flow	-784.43M	-428.99M	-335.50M	-435.46M	-300.12M	-294.28M
Financing Cash Flow	574.08M	227.06M	64.21M	301.63M	131.44M	171.78M

Northwest Gas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWN, the sentiment is Positive. The current price of 47.13 is above the 20-day moving average (MA) of 45.44, above the 50-day MA of 43.46, and above the 200-day MA of 41.19, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 69.35 is Neutral, neither overbought nor oversold. The STOCH value of 89.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWN.

Northwest Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGS	―	$4.96B	19.73	8.24%	3.23%	13.43%	6.49%
SR	―	$5.20B	19.05	8.37%	3.56%	-6.65%	11.47%
NWN	―	$1.93B	18.62	7.36%	4.16%	8.40%	17.90%
CPK	―	$3.10B	23.51	9.25%	2.02%	19.02%	20.13%
SWX	―	$5.80B	30.00	5.41%	3.08%	-10.07%	5.98%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CTRI	―	$1.88B	-576.15	-0.59%	―	―	―

Northwest Gas Corporate Events

Northwest Gas Subsidiary Issues $185M Senior Notes

On August 25, 2025, SiEnergy Gas, LLC, a subsidiary of Northwest Natural Holding Company, issued $185 million in senior notes to institutional investors. The proceeds from these notes, which are secured by a lien on SiEnergy’s assets, will be used for general corporate purposes, including debt repayment, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (NWN) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Northwest Gas stock, see the NWN Stock Forecast page.

Northwest Natural Holdings Reports Q2 2025 Results

Northwest Natural Holding Company, headquartered in Portland, Oregon, operates in the utilities sector, providing natural gas, water, and renewable energy services across seven states.

Northwest Natural Gas Reports Strong Earnings and Growth

Northwest Natural Gas Company recently held its earnings call, revealing a generally positive sentiment with strong earnings growth and significant utility customer expansion. The company also celebrated a successful settlement in the Oregon rate case and robust performance in its renewables segment, although it acknowledged challenges such as increased expenses and interest costs. Overall, the developments and growth projections suggest a promising outlook for the company.

Northwest Gas Modernizes Governance with Bylaw Amendments

On July 23, 2025, Northwest Natural Holding Company approved significant amendments to its bylaws. These changes include updates to procedural and disclosure requirements for shareholder meetings, extending notice periods, revising proposal submission deadlines, and permitting electronic communications. These amendments aim to modernize and simplify governance processes, potentially enhancing shareholder engagement and operational efficiency.

The most recent analyst rating on (NWN) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Northwest Gas stock, see the NWN Stock Forecast page.